Correlation Between Lutian Machinery and CGN Nuclear
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By analyzing existing cross correlation between Lutian Machinery Co and CGN Nuclear Technology, you can compare the effects of market volatilities on Lutian Machinery and CGN Nuclear and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Lutian Machinery with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and CGN Nuclear.
Diversification Opportunities for Lutian Machinery and CGN Nuclear
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lutian and CGN is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and CGN Nuclear Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGN Nuclear Technology and Lutian Machinery is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Lutian Machinery Co are associated (or correlated) with CGN Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGN Nuclear Technology has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and CGN Nuclear go up and down completely randomly.
Pair Corralation between Lutian Machinery and CGN Nuclear
Assuming the 90 days trading horizon Lutian Machinery is expected to generate 1.37 times less return on investment than CGN Nuclear. But when comparing it to its historical volatility, Lutian Machinery Co is 1.1 times less risky than CGN Nuclear. It trades about 0.18 of its potential returns per unit of risk. CGN Nuclear Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 614.00 in CGN Nuclear Technology on August 25, 2024 and sell it today you would earn a total of 178.00 from holding CGN Nuclear Technology or generate 28.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. CGN Nuclear Technology
Performance |
| Timeline |
| Lutian Machinery |
| CGN Nuclear Technology |
Lutian Machinery and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and CGN Nuclear
The main advantage of trading using opposite Lutian Machinery and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, CGN Nuclear can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CGN Nuclear will offset losses from the drop in CGN Nuclear's long position.| Lutian Machinery vs. Biwin Storage Technology | Lutian Machinery vs. PetroChina Co Ltd | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. China Construction Bank |
| CGN Nuclear vs. Zijin Mining Group | CGN Nuclear vs. Wanhua Chemical Group | CGN Nuclear vs. Baoshan Iron Steel | CGN Nuclear vs. Shandong Gold Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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